Analyst Note: Evaluating Current & Future Use Cases in NFTs

Key Insights

• Maximizing speculative factors can spark flywheels that give projects the opportunity to create intrinsic value in the long run.
• Most NFTs currently have little to no utility, but the long-term trend is towards increasing functionality within NFT projects.
• The case for picture-based NFTs relies on a luxury good framework for evaluating their value.
• The case for functionality-based NFTs forecasts growth for the ecosystems that will be supported by those NFTs.

Cobie recently critiqued the NFT community for being nothing more than speculators on “altcoins with pictures.”